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Qualcomm delays second investment in Sharp

2013-03-18 09:38:00| Telecompaper Headlines

(Telecompaper) Sharp said a second investment of approximately JPY 5 billion Qualcomm, due to be made on 29 March, will be delayed because Sharp was unable to develop production technology for its MEMS displays. Sharp told Bloomberg that the postponement would not result in liquidity problems and that the firms were now working toward a deadline of 20 June. Qualcomm agreed in December to invest JPY 9.9 billion in Sharp, which is trying to overcome losses caused by falling demand for its TVs. The investment is conditional on the development of a plan for mass production of the displays and for Sharp's business to become profitable. The first sale of around JPY 4.94 billion of shares was completed at the end of December 2012. Earlier this month, Sharp announced that it would sell 35.8 million shares, a 3.04 percent stake, to Samsung to raise JPY 10.38 billion.

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